Interim report May – October 2011/12

• Order bookings increased to SEK 4,402 M (4,127), equivalent to 9* percent excluding Nucletron.
• Net sales decreased to SEK 3,364 M (3,506), equivalent to 2* percent excluding Nucletron (see page 2).
• Operating result amounted to SEK 344 M (455) before non-recurring items of SEK 133 M (−) (see page 5).
• Net income amounted to SEK 295 M (305). Earnings per share amounted to SEK 3.12 (3.28) before dilution and SEK 3.08 (3.24) after dilution.
• Cash flow from operating activities amounted to SEK 242 M (204). Cash flow after investments was SEK -2,989 M (-71), including acquisition effects of SEK -3,171 M (-239).
• On September 15, 2011, Elekta completed the acquisition of Nucletron, world leader in brachytherapy treatment planning and delivery. 
• On September 30, 2011, Elekta divested its pathology business, PowerPath®.
  The net gain amounted to SEK 180 M.
• For the fiscal year 2011/12, net sales is expected to grow by more than 20 percent in local currency and operating profit in SEK is expected to grow by more than 20 percent. The acquisition of Nucletron is expected to contribute to this increase by approximately 10 percentage points in both net sales and operating profit.

* Compared to last fiscal year at unchanged exchange rates.

Table included in attached PDF file

President and CEO comments

The trend for Elekta’s order bookings is strong and in the quarter order bookings increased by 14* percent and for the first six months by 9* percent excluding Nucletron. This indicates good demand and I am confident of the continued operational performance.

The market situation remains robust. In region Europe, Middle East and Africa, the activity level was favorable and we received significant orders from Russia during the quarter. In region Asia Pacific, order bookings continued to increase. China, India and Australia accounted for the strongest growth during the period. Growth remained strong also in North America with significant orders from leading hospitals.

Our assessment is that the recent debt crisis in Europe has only had a marginal impact on market conditions so far. Lifesaving treatment like cancer care will remain a priority area for healthcare investments and for care providers. We are carefully and continually monitoring the international development.

Elekta is the market leader in most growth markets, which accounted for approximately 30 percent of the Group net sales during the first half year. We expect the pace of our geographical expansion to accelerate over the next few years, providing more people with access to cancer care. The acquisition of Nucletron, which is world-leading in brachytherapy, was finalized during the quarter and will further strengthen our growth potential. The integration of its operations is progressing according to plan.

Net sales for the period declined 2* percent excluding Nucletron. During the corresponding period of last year, net sales rose 15* percent, resulting in a challenging comparison. Net sales was negatively impacted due to a higher proportion of sales being made in growth markets, where the time from order to delivery is normally longer. Our continued investments in expansion as well as in research and development, combined with a lower net sales, resulted in a weaker operating profit than the year-earlier period.

Elekta’s order backlog is on a record level and is a strong indication of the growth prospects for the fiscal year. With planned deliveries from the order backlog, I feel confident about the second half year. The outlook for the fiscal year 2011/12 is unchanged and we add the effects of the acquisition of Nucletron.

For the fiscal year 2011/12, net sales is expected to grow by more than 20 percent in local currency and operating profit in SEK is expected to grow by more than 20 percent. The acquisition of Nucletron is expected to contribute to this increase by approximately 10 percentage points in both net sales and operating profit. Currency is estimated to have a negative effect of about SEK 100 M including hedging effects on earnings for the fiscal year 2011/12.

Tomas Puusepp
President and CEO

*Based on unchanged exchange rates

Elekta’s six-month interim report conference call

Elekta will host a telephone conference 10.00-11.00 CET on December 2, with President and CEO Tomas Puusepp and CFO Håkan Bergström.

To take part in the conference call, please dial in about 5-10 minutes in advance and use the access code 907053. Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 877 491 0064.

The telephone conference will also be broadcasted over the Internet (listen only). Please use the link http://webeventservices.reg.meeting-stream.com/20111212elekta

For further information, please contact:

Håkan Bergström, CFO, Elekta AB (publ)
+46 8 587 25 547, [email protected]

Stina Thorman, Vice President Corporate Communications, Elekta AB (publ)
+46 8 587 25 437, [email protected]

Johan Andersson Melbi, Investor Relations Manager, Elekta AB (publ)
+46 8 587 25 415, [email protected]

The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 07.30 CET on December 2, 2011.